Demand
Supply
Macroeconomics
Economic Terms
Bonus Questions
100
What is demand in economics?
Demand refers to the quantity of a good or service that consumers are willing and able to purchase at a given price.
100
What is supply in economics?
Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at a given price.
100
What does macroeconomics study?
Macroeconomics studies the overall functioning and performance of an economy, focusing on large-scale economic factors like national income, inflation, unemployment, and economic growth.
100
What is Scarcity?
when there is unlimited needs and wants and limited resources
100
Who is the founder of Ford Company?
Henry Ford
200
What is the relationship between the price of a product and its demand, according to the law of demand?
According to the law of demand, as the price of a product increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases (inverse relationship).
200
According to the law of supply, what happens to the quantity supplied of a good when its price increases?
According to the law of supply, when the price of a good increases, the quantity supplied also increases (direct relationship).
200
What is Gross Domestic Product (GDP)?
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country’s borders in a specific time period, usually annually or quarterly.
200
What is equity?
refers to the concept of fairness or justice in the distribution of wealth, income, and resources within a society. I
200
What is this?
Dombyra
300
What are the factors, other than price, that can affect the demand for a product?
Non price determinants (any)
300
What is one factor, other than price, that can affect the supply of a product?
One factor that can affect supply is the cost of production, such as changes in the prices of raw materials or labor.
300
What is inflation and how does it affect the economy?
Inflation is the general increase in prices of goods and services over time. It reduces the purchasing power of money, meaning consumers can buy less with the same amount of money.
300
What is Resource Allocation?
strategically selecting and assigning available resources
300
Who is the founder of Apple Company?
Steve Jobs
400
Explain the difference between a movement along the demand curve and a shift in the demand curve.
A movement along the demand curve occurs when the price of the product changes, affecting the quantity demanded. A shift in the demand curve happens when a non-price factor, such as income or preferences, changes the demand for the product at every price.
400
Explain the difference between a movement along the supply curve and a shift in the supply curve.
A movement along the supply curve occurs when there is a change in the price of the good, affecting the quantity supplied. A shift in the supply curve happens when a non-price factor, such as technology or input costs, changes the supply at every price level.
400
What is the difference between fiscal policy and monetary policy in managing the economy?
Fiscal policy refers to the government's use of spending and taxation to influence the economy. Monetary policy involves controlling the money supply and interest rates, typically managed by a central bank like the Federal Reserve, to stabilize the economy.
400
What are the Factors of Production?
The factors of production are land, labor, entrepreneurship, and capital
400
Who invented concept of invisible hand?
Adam Smith
500
How does the concept of elasticity of demand help businesses understand consumer behavior?
Elasticity of demand measures how sensitive the quantity demanded is to changes in price. If demand is elastic, a small change in price causes a large change in demand. If demand is inelastic, demand changes little with price changes. For example, luxury items tend to have elastic demand, while necessities like gasoline have inelastic demand.
500
How do subsidies and taxes affect the supply of a product? Provide examples.
Subsidies are financial aids from the government to producers, which lower production costs and increase supply. Taxes, on the other hand, raise production costs, decreasing supply. For example, a government subsidy for renewable energy companies would increase their supply of solar panels, while a new tax on sugar could reduce the supply of sugary products.
500
How does high unemployment affect an economy, and what are two policies that could help reduce unemployment?
High unemployment leads to reduced consumer spending, lower national output, and decreased overall economic growth. Two policies to reduce unemployment are expansionary fiscal policy (e.g., increasing government spending) and expansionary monetary policy (e.g., lowering interest rates to encourage investment and hiring).
500
What is the opportunity cost?
Opportunity cost is the potential forgone profit from a missed opportunity
500
Who is this celebrity?
Drake